Most investors look at the building first, and that is exactly why they pick the wrong deals.
Here is a simple 3 filter checklist to fix that.
First, vet the sponsor and alignment.
You are not betting on a property, you are betting on a decision maker.
Look for real track record, clear communication, and real skin in the game.
Second, assess fundamentals and downside.
Do not start with upside.
Start with survival.
Ask one question, does this deal still work when things go wrong.
Third, understand the structure and terms.
You are choosing the rules of the game.
Know where you sit in the capital stack, how you get paid, and what has to happen before you lose money.
Strong investors do not chase deals.
They filter them.
Which of these three filters do you think most people skip?